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save up or pay off CC

i have about $60/month of extra money (regular stuff is paid for.. but if i need more food, gas, etc- it comes from this money). i have a CC that i've been trying to pay off for 3 years now. right now, its at $300. min payments is only $10

should the full $60 go to the CC- leaving me with no savings, but if i do that, it'll be paid off in 5 months?

put $50 in savings, and $10 for the CC- it'll be paid off in 30 months- 1500 in savings in 30 months

or do half/half- 30 in savings, 30 for CC-- paid off in 10 months, leaving me with $300 in savings in 10 months

i want to do option one (pay off in 5 months) but it leaves me with NO savings whatsoever.. but i do have family to fall back on for emergency $ if needed.

I'd pay at least $30 on the credit card and save what's left. If your savings grows beyond what you reasonably might need, then put the extra on the CC.

Answer by
Anonymous
at 2:21 PM on Jun. 10, 2010

if you have a support system and you have normally been able to live without the extra $60 a month, i would defiantely just pay it all to the credit card.

you could also pay it all one month. then next month if there were some extra things that came up and you couldnt do the full 60 to the credit card, then just do the 10. I would try to pay as much as you can to the credit card if you are able to do so.

the savings wouldnt be in the bank- i guess i should mention that. at least not like a savings bond or anything- just a regular checking account so i can get to the money if i truly need it.. but its out of reach if i just want to waste it on something stupid

Answer by
Anonymous
at 2:28 PM on Jun. 10, 2010

I would pay the cc off. Then save it. Loosing all that money to intetrest

You don't share what your fall back EM fund is. If it's at least $1,000 then I say apply that $60 every month to your CC payment and wipe it out! If all this time you have been paying the min. payment on a $300 bill then it might NEVER go away (Or it may take several more YEARS).

1. Check what how much interest is added to your account each month. Often CC companies set the min. payment at or below the interest. If that is the case paying the min. payment will NEVER decrease or wipe out the bill.

2. You'll want to apply as much money as you can to the CC. bill. However it's could to at least double the interest applied to that account each month. That way it will at least start going down and be wiped out!